Despite financial headwinds tied to inflationary costs and staffing shortages, long-term care corporate executives with multi-facility organizations were paid 3.17% more in 2022 compared to the previous year. And, there’s a planned increase of 3.3% from 2022 to 2023 for executives in that space.

That’s according to the 2022-2023 Multi-Facility Corporate Compensation Report issued by the Hospital & Healthcare Compensation Service (HHCS).

The report covered nursing home corporate executive compensation, along with larger revenue continuing care retirement communities (CCRCs) and assisted living communities, from 37 multi-facility companies.

Higher compensation rates were tied to larger revenue generation for the organizations in the report. Companies with revenue of up to $49.9 million paid their CEOs on average $373,481 for total compensation. Companies with revenue between $50 million and $99.9 million paid their CEOs $487,220 on average for total compensation, while companies with upwards of $100 million in revenue paid their CEOs $735,229 on average per year, for total compensation.

Looking at salary alone, HHCS found the group with the lowest revenue paid CEOs $349,922 per year. Mid-tier companies based on revenue paid CEOs $469,642 per year, while companies with revenue upwards of $100 million paid their CEOs $578,476 per year.

About 79% of respondents said salary increases were based on performance, while 30% said cost of living was a factor, 25% selected length of service and 6.98% said relation-to-profit was a factor.

More than half of respondents said performance evaluations for executives were goal-based, followed by revenue goals specifically, then skills and finally patient satisfaction.

Long-term care participants were overwhelmingly in the not-for-profit category, making up 34 of respondents, while for-profit companies made up just three respondents.

The report draws on three studies that collected salary and compensation data for long-term care, hospital and health systems, along with home and hospice agencies. Data is reported nationally and includes information on pay policies and corporate benefits. Payment trends were consistent across all those settings.

Fringe benefits outlined in the long-term care section of the report included short-term incentive plans for the CEO, with incentive metrics and weights used to determine bonuses. Whether a company had a short-term plan or not was split 50-50 of the 26 facilities that responded to the question.

Most respondents said operating margin and income, along with revenue growth, were top metrics for bonuses, followed by company mission and quality metrics.

In terms of a long-term incentive plan for executives, only 35.5% of companies had one in place, while 64.5% did not.